What is an excess?

The excess is the amount of each claim that you will pay. For example if you lodge a claim for HK$2,000 and your excess is HK$1,000 then you would pay the first HK$1,000 of the bill, leaving HK$1,000 to be covered by your car insurance. If you have a higher excess then the insurer pays less of the bills, so the car insurance is cheaper.